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Mynaric secures $15M deal with Rocket Lab for SDA program

EditorNatashya Angelica
Published 05/07/2024, 06:18 PM
MYNA
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LOS ANGELES - Mynaric (NASDAQ:MYNA), a provider of laser communications products, has announced a new contract to supply optical terminals to Rocket Lab USA, Inc (NASDAQ:RKLB) for the Space Development Agency's (SDA) Tranche 2 Transport Layer (T2TL) - Beta program. The deal, valued at approximately $15 million, will see Mynaric deliver its CONDOR Mk3 terminals with deliveries slated to begin in 2025 and extend into 2026.

Rocket Lab, which was awarded the 18-vehicle program in January 2024, will integrate Mynaric's technology into its Pioneer satellite buses. The T2TL is designed to serve as the space backbone for the Joint All Domain Command and Control (JADC2) infrastructure, facilitating low-latency data transport and connecting sensors to shooters with direct tactical satellite communication.

Brad Clevenger, Vice President of Space Systems at Rocket Lab, expressed enthusiasm for the partnership, citing Mynaric's history in delivering industry-leading communications technology. Tim Deaver, Mynaric's Vice President of Global Sales and Solutions, echoed this sentiment, emphasizing the company's pride in supporting the Proliferated Warfighter Space Architecture and expanding its customer base through this collaboration.

Mynaric's CONDOR series is tailored for mass deployment in both government and commercial satellite constellations. The company's technology has been previously selected for various projects, including SDA's Experimental Testbed NExT, Capella Space's commercial SAR satellites, and the DARPA Blackjack program.

Moreover, Mynaric is involved in research on optical technologies for high-throughput inter-satellite links with the European Space Agency (ESA) and has been selected by the German government to develop quantum communication capabilities.

This agreement with Rocket Lab marks another strategic step for Mynaric in providing critical laser communication hardware to significant aerospace players and government programs. The information for this report is based on a press release statement.

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InvestingPro Insights

Mynaric's recent contract with Rocket Lab USA for the Space Development Agency's Tranche 2 Transport Layer program is a testament to the company's growing influence in the aerospace sector. As Mynaric prepares for mass deployment of its CONDOR Mk3 terminals, here are some insights from InvestingPro that may interest investors:

With a market capitalization of approximately $128.94 million, Mynaric has demonstrated a significant revenue growth rate of 13832.08% over the last twelve months as of Q2 2023, signaling a robust expansion in its business activities. Despite this remarkable growth, the company faces challenges as indicated by a negative gross profit margin of -38.72%, reflecting costs that currently exceed revenues.

InvestingPro Tips highlight that Mynaric's net income is expected to grow this year, which could be a positive sign for future profitability. Moreover, analysts predict the company will be profitable this year, a potential turning point for the company's financial performance. Still, it is also important to note that Mynaric is trading at a high Price / Book multiple of 14.0, suggesting a premium valuation compared to its book value.

For investors seeking a deeper analysis and more InvestingPro Tips, the platform offers additional insights. There are currently 11 more tips available on InvestingPro, which can be accessed for Mynaric at https://www.investing.com/pro/MYNA. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and unlock full access to these valuable insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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